The S&P 500 closed at a record high on Thursday as gains in technology stocks, particularly semiconductor companies, boosted markets after producer inflation data supported expectations that the Federal Reserve may hold interest rates steady. Strong corporate earnings and continued optimism around artificial intelligence spending also helped lift investor sentiment.
Technology Stocks Drive Market Gains
Memory chip makers led the advance, with Sandisk shares surging 13.7% and Micron Technology rising 4.2%. Microsoft gained nearly 1%, while Meta Platforms climbed 2.8%.
AI cloud company CoreWeave declined 1.3% after jumping 19% in the previous session following an increase in its annual capital spending forecast.
Recent strong forecasts from major technology companies including Microsoft and Amazon have helped ease concerns that massive investments in AI data centers could weigh on future returns.
“The AI earnings-driven tech boom continues,” said Jay Hatfield, CEO of Infrastructure Capital Advisors. “It’s an earnings boom, not a bubble.”
Major Indexes Reach New Highs
The S&P 500 gained 0.65% to close at 7,798.99 points, surpassing its previous record close. The Nasdaq advanced 0.81% to 26,803.03 points, while the Dow Jones Industrial Average increased 0.13% to 53,839.99 points.
Seven of the 11 S&P 500 sectors finished higher, led by communication services, which gained 1.56%, followed by real estate, which rose 1.34%.
The S&P 500 is now up about 14% in 2026, while the Nasdaq has gained approximately 15%.
Inflation Data Supports Fed Rate Expectations
New economic data showed U.S. producer prices were unchanged in July as lower goods prices offset modest increases in service costs. Weekly unemployment claims also increased moderately, suggesting a stable labor market.
Investors are pricing in a 63% probability that the Federal Reserve will keep interest rates unchanged at its upcoming meeting, according to the CME FedWatch tool.
Brent crude oil futures fell about 2% to close at $87.07 per barrel.
Corporate Movers
Cisco Systems — Shares dropped 8.4% after the networking equipment maker issued a strong revenue forecast that failed to meet elevated investor expectations.
Netflix — Shares gained 5.4% after billionaire investor Bill Ackman disclosed a new position in the streaming company as part of a major portfolio restructuring at Pershing Square.
Tapestry — Shares plunged more than 16% after the Coach owner forecast limited annual revenue growth.
Dell Technologies — Shares rose 2.1% and HP gained 6.9% after strong quarterly results from Lenovo exceeded expectations, boosting sentiment across the PC and hardware sector.
Middle East Risks Remain in Focus
Investors continued monitoring tensions between Iran and the United States as efforts toward a permanent resolution to the Iran war remained uncertain. Shipping traffic through the Strait of Hormuz also remained significantly reduced.
Market Breadth and Trading Volume
Advancing stocks outnumbered declining stocks in the S&P 500 by a 1.7-to-1 ratio.
The S&P 500 recorded 30 new highs and one new low, while the Nasdaq posted 155 new highs and 85 new lows.
Trading volume remained light, with 16.1 billion shares changing hands compared with the 20-session average of 17.5 billion shares.
